Good buys? These three San Francisco homes are all under $1 million

Updated 7:45 am, Thursday, January 7, 2016

The largest group of buyers in San Francisco's real estate market is likely made up of people looking for a house under a million—and so SFGate tracked down these three properties that hit the market in the last week. To anyone living in Kansas, these homes are wildly overpriced, but in S.F. where high-paying jobs are plentiful, they might offer a good opportunity for a first-time buyer.

This 1924 bungalow in Crocker Amazon needs a refresh, but offers good value with city views from the master bedrooms, three bedrooms and two baths upstairs and a studio and one-bedroom unit on the first floor.

This Bay View home was built in 1912 and still has some original windows.

This Bay View home was built in 1912 and still has some original windows.

Photo: SFMLS

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The upstairs kitchen

The upstairs kitchen

Photo: SFMLS

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Palm trees tower around this Bay View home

Palm trees tower around this Bay View home

Photo: SFMLS

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One of three bedrooms

One of three bedrooms

Photo: SFMLS

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Good buys? These three San Francisco homes are all under $1 million

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The most common buyer in San Francisco's real estate market isn't looking for a beautifully restored Victorian in Noe. Nor does he want a luxury condo in a sparkling SOMA high-rise. Rather he's most likely hoping to move into a single family home for under a million dollars.

"The reality is not everyone in San Francisco founded an Uber or works at a Google as the media leads you to believe," said S.F. native and real estate agent Heather Stoltz. "There are people who can only afford to go out to Starbucks once a week. They want a dog, maybe a baby...and a house."

These buyers can't afford remodeled homes in hot neighborhoods or condos with outrageous HOA dues. They're looking for two- to three-bedroom bungalows that have solid bones but haven't been renovated in up-and-coming neighborhoods, such as Bay View, Crocker-Amazon, the outer avenues, where you can still find value.

Stoltz adds: "There are thousands of buyers in the under-million range. The most competitive sales are on homes priced between $750,000 to $950,000. The $1 million to $1.5 million range is also competitive but these properties might get 10 offers while a home under a million might get 40."

Stoltz, who's an agent with Berkshire Hathaway, says she currently has about 45 clients looking for a home under a million.

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The problem is these homes are scarce—and becoming scarcer. In the past five years, the number of homes listed under a million has dropped by some 75 percent, according to data from Zillow. For example, 1,493 homes under a million were listed in Oct. 2010, and during the same month last year, only 354 were priced in this range.

Building projects are underway across the city, promising to add new housing for people flocking to the area for jobs, but these are mainly condo complexes. This makes sense because the demand for housing is huge and multiunit buildings more effectively accommodate the growing population (and bring in more dollars for developers). Why would anyone build a row of a half-dozen single-family homes on an empty lot in S.F. when you could put up a 10-story building with over 100 apartments?

As a result, "a lot of people start looking in the East Bay because they get frustrated," Stoltz said.

But despite the lack of "affordable" homes, Stoltz added these prized properties still exist and she's listing one at $749,000 for a client in the next few weeks.

SFGate searched home listings and found three in the $850,000 to $1 million range that hit the market in the past week. A two-bedroom Marina-style at 806 40th Ave., blocks from Ocean Beach, has charm, original details and good bones, but needs some updates. It's listed for $999,000.

A five-bedroom bungalow at 30 Baltimore Way in Crocker-Amazon is listed at $950,000 and includes a downstairs one-bedroom unit for potential rental income. The home is stuffed with the owner's belongings, but if you look beyond the clutter and a dated remodel, you'll realize potential.

"I'm getting a lot of interest," said Bob Frappia, who's listing the Crocker-Amazon property. "I expect after this coming weekend, it's going to take off."

Will these properties go over a million? Many do, but not all—and you probably only hear about the ones that get dozens of offers.

Suzanne Rocha of Cal Home just listed a three-bedroom at 1496 Hudson with water views in the Bay View, only blocks from the Flora Grubb nursery where you can enjoy a cup of coffee among a fabulous array of succulents.

"I think it's going to sell for right under a million," Rocha said. "There's a lot of remodeling going on in this neighborhood. I think you're going to see a lot of change and values go up."

And there you have it. If you want a home under a million, this might be the one.